Budget 2026: Gems and jewellery industry seeks GST cut, duty rationalisation and customs reforms

What the industry is asking for

In its pre-Budget representation for the Union Budget 2026–27, India’s gems and jewellery industry has urged the government to consider a package of measures including GST cuts, customs-duty rationalisation and changes to procedures aimed at improving export competitiveness.

The Gem and Jewellery Export Promotion Council (GJEPC) outlined proposals to reduce friction in an export-heavy business, arguing that global trade conditions—tariffs, shifting supply chains and changing consumer preferences—have increased the need to protect India’s edge in diamonds and jewellery.

Specific proposals highlighted

• Rationalisation of import duties on cut and polished diamonds and coloured gemstones to keep exports competitive.
• Process reforms such as risk-based customs clearance to improve speed and predictability for exporters.
• Greater use of digital tools (including AI-enabled appraisals) and expanded self-certification for trusted exporters.

Separately, the All India Gem and Jewellery Domestic Council (GJC) also submitted demands, including a call to reduce GST on gold and silver jewellery, and suggested changes around tax treatment for exchanges of hallmarked jewellery to reduce friction for households.

Why it matters

Gems and jewellery is a major export segment and also a high-visibility domestic market. Any GST and customs tweaks can affect consumer prices, working capital cycles, and the ease with which exporters can fulfil orders. With Budget season approaching, the government will weigh revenue impact against industry competitiveness and compliance considerations.

The final Budget outcome will indicate how strongly policy leans towards easing logistics and costs for export-led sectors amid uncertain global demand.